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Natco Pharma revenues stood at ₹ 735 crore

ICICIdirect Research 17 Aug 2026 DISCLAIMER

News: Natco Pharma revenues stood at ₹ 735 crore due to 58% de-growth in exports formulations (higher base of Q1FY26 ) to ₹ 477 crore. Domestic formulations registered ~27% growth to ₹ 136.4 crore. Other segments such as API grew 27% to ₹ 66.7 crore and crop protection registered revenues of ₹40.8 crore. EBITDA de-grew ~67% YoY to ₹ 186 crore while EBITDA margins de-grew 1760 bps to 25.4%. Adjusted PAT de-grew 75% YoY to ₹ 122 crore with de-growth in PAT margins of 1953 bps to 16.6%. Additionally, associate profit reflection from Adcock Ingram holdings in Natco’s financials amounts to ₹ 84.3 Crore.

View: FY27 guidance is maintained with Revenues of ₹ 3400-3500 crore (~20-25% de-growth) and a PAT of ₹ 700-750 crore (45-50% de-growth) with a complete absence of gRevlimid and no major US launches. The management however expects better FY28 with traction coming from Canada, Brazil and India besides some niche launches in the US which can translate into 15-25% PAT growth. The company has set its site on future blockbusters emanating from a US pipeline of 28 para-IVs with 20 FTFs which it expects to crystallize over the next 3-5 years beyond FY27. The management is contemplating a fund raise of around ₹ 2000 crore mainly for M&A activities. This, along with the current cash pile of ~₹ 1500 crore should be the available war chest for the company. We keep tab on this as well as timeline of future launches.

Impact: Neutral

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